European Banks Hemorrhage Profits

2/16/2012 8:15AM

European banks have had an atrocious reporting period. The latest is Société Générale with a 51% drop in net profit. This came after similar bad news from BNP Paribas on Wednesday. WSJ's David Enrich has been following the numbers. Photo: AP

This transcript has been automatically generated and may not be 100% accurate.

I ... well not that they and not the major European banks reporting hospital losses in the last yet ... the laces societies in love with a fifty one percent drop in profit this came out this in the bad news ... from BNP had on Wednesday ... David Enrich has been falling the number so no surprises then in this in the state is a bit ... well there's no surprise to the banking industry is a ... really rough patch right now we are ... profits are not getting ... revenues are ... some new lows levels in years aam ... it's not it's not that it could be they're not having liquidity problems to actually see the book and ... I love this has to do with the fact that all of these banks have been having put money aside to cover the losses in recent Apple ... losses meets up the thing is though that some of the sting is not listening to for weeks ... should Greece doesn't really that much to do it that ... there is a new middle do think that that is to Greece in the top of the they'll finish present there is you know this option today that given the two hundred and fifty million years give or take of writedowns on Greek debt and ... the snide comments of hundreds of millions of losses on all sorts of it says this looking for soft and results from HSBC's ... and they lost three times as much money ... on it losses on credit assets from the two thousandseven two dozen eight financial crisis three times but the mad as they did laundry so ... that banks have been a ... and they're in the business and for years on all sorts of stuff ... that they just haven't wanted losses on a law that's coming to a head right now and and revenues are set to face the realities that are starting to slowly and butthat's niqab is a revenue has evaporated and you know if you don't ... do not making any big name money and and you are losing money on various bad investments it's not a pretty good that the assaults were ... from Iowa this memo that ... Greece is only two percent of the euro zone on says about is is that saw ... its ... tiny bowl and let these banks are exposed to well Yeh inventive also had two years now you're in half to get rid of dividend payer their holdings in ... Greek debt and that the bigger concern is whether all them ... in other weaker ... European countries of course there is also the problem of recapitalization had the person that I mean that the source of strength and that that that books about the bow she's a mean you think this is a part of my stay ... well I think they do with the it's not the chopper was causing them to not have good results it but it's important to text only because of it are the reason the banks said they will be all to rebuild their capital ... buffers is by retained or spiky and other process to make and they're not making profits ... and raise the money ... from them ... so what is it that says about of the consultant will briefly mean you think this is really up type that started thinking of taking the losses let's let's let's go up ... um it will then and there is of the about half of the big European banks reported this point the other half isn't daunted generally be ... consistent enough to be very